Barksdale Resources Corp. (TSXV: BRO) (OTCQB: BRKCF) (FSE: 2NZ) has closed the first tranche of its non-brokered private placement, raising gross proceeds of C$13,179,020 through the issuance of 73,216,777 units at C$0.18 per unit. Simultaneously, the company completed a debt settlement that eliminates all significant debt from its balance sheet. The proceeds are earmarked to fund a phased 16,000-metre diamond core drilling program targeting the Sunnyside Porphyry Deposit in southern Arizona, a development investors in base and precious metals exploration companies may be closely watching.

Key Points

  • Barksdale Resources Corp. (TSXV: BRO) (OTCQB: BRKCF) (FSE: 2NZ)
  • First tranche of non-brokered private placement closed, raising C$13,179,020 from 73,216,777 units at C$0.18 each
  • Debt settlement with Delbrook Resource Opportunities funds completed via issuance of 40,000,000 common shares and 5,208,333 units, fully eliminating secured convertible debentures
  • Investors may watch for the second and final tranche close expected in mid-October 2026, pending TSX Venture Exchange acceptance

Unit Structure and Warrant Terms for the Barksdale Private Placement

Each unit issued in the first tranche consists of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at an exercise price of C$0.30 until October 8, 2028, two years from the issuance date. All securities issued in connection with both the first tranche and the debt settlement are subject to a four-month hold period expiring February 9, 2027, in accordance with applicable Canadian securities legislation. The offering remains subject to final acceptance by the TSX Venture Exchange.

Insider Participation and Related-Party Disclosure at Barksdale

Certain insiders participated in the first tranche, purchasing an aggregate of 13,164,089 units for gross proceeds of C$2,369,536. Participants included Medalist Capital Ltd. (6,913,089 units), Chairman George Ogilvie (4,167,000 units), President and CEO Chris Stewart (556,000 units), CFO David Birch (139,000 units), and Director Darren Blasutti (1,389,000 units through a corporation he owns). The company states it is relying on exemptions from formal valuation and minority shareholder approval requirements under Multilateral Instrument 61-101, as insider participation did not exceed 25% of market capitalisation.

Sunnyside Drilling Program and ZTEM Study Plans

Barksdale intends to apply net proceeds toward a phased 16,000-metre diamond core drilling program at its 67.5%-owned Sunnyside Porphyry Deposit in Arizona's Patagonia mining district, commencing later in fall 2026. An initial 8,000-metre phase will follow up on prior reverse-circulation drill results, with the stated objective of defining an initial mineral resource. The program will also test areas surrounding the historic Sunnyside, Volcano, and Thunder Mines. Additionally, the company plans to conduct a ZTEM geophysical study across both its Sunnyside and Four Metals properties.